How Do I Register a Sole Proprietorship in Indiana?

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Steps to Establish a Sole Proprietorship in Indiana:

  1. Registering a Sole Proprietorship:

    • Register for GST (Goods and Services Tax) in the proprietor’s name.
    • Obtain an Aadhar Card, PAN (permanent account number), and proof of a registered office address.

  2. Getting an EIN Number in Indiana:

    • Register online with INBiz.
    • Receive your Tax Identification Number within 2-3 hours.

Business Structure and Requirements:

  • A sole proprietorship in Indiana is easy to set up.
  • No formal registration required.
  • Sole proprietors report business income on personal tax returns.

Costs and Registration:

  • Cost to register online with the Department of Revenue: $31.
  • Cost to register by mail: $50.

Additional Steps for Sole Proprietors:

  1. DBA Acquisition
  2. Tax Registration
  3. Bank Account Opening
  4. Insurance Purchase

Advantages and Disadvantages of Sole Proprietorships:

  • Advantages: Simple and flexible.
  • Disadvantages: Lack of asset protection.

Legal Requirements for Starting a Sole Proprietorship:

  • Choose a business name.
  • Obtain licenses if required.
  • Register for taxes.

Fictitious Business Name:

  • File a Doing Business As Registration if operating under a fictitious business name.

Conclusion:

  • Sole proprietorships are owned and operated by a single individual.
  • Complete control over business decisions with no legal divide between business and owner.

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